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Free CII Cargo and Goods in Transit Insurances MCQ Examination (E90) Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the CII Cargo and Goods in Transit Insurances MCQ Examination (E90) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1Cargo tonnage is unchanged, but ships must sail a longer route. Which trade measure captures the additional transport work?

    1. A.The declared invoice value
    2. B.The number of consignments
    3. C.The cargo ton-milesCorrect answer: C
    4. D.The cargo weight in tonnes

    Explanation: UNCTAD Review of Maritime Transport 2025 states: "greater distances travelled per unit of cargo". Ton-miles combine cargo weight with distance. A longer route increases this measure even when tonnage, shipment count and invoice value do not increase.

    Reference: UNCTAD Review of Maritime Transport 2025 — p. 6, distance-adjusted volumes

  2. 2Under the Marine Insurance Act 1906, when must the assured ordinarily have an insurable interest to recover a marine cargo loss, leaving aside the special 'lost or not lost' provision?

    1. A.Only when the proposal is signed
    2. B.At the time of the lossCorrect answer: B
    3. C.Only when the premium is paid
    4. D.At any time after learning of the loss

    Explanation: Marine Insurance Act 1906 provides: "The assured must be interested in the subject-matter insured at the time of the loss though he need not be interested when the insurance is effected". The ordinary rule requires interest at loss, not necessarily at inception. The assured cannot retrospectively create the required interest after learning of the loss; the stem excludes the special lost-or-not-lost rule.

    Reference: Marine Insurance Act 1906 — section 6(1)–(2)

  3. 3What does 'all risks' mean in unamended Institute Cargo Clauses (A) 2009?

    1. A.Every financial loss suffered by the goods' owner
    2. B.Only physical damage caused by specifically listed events
    3. C.Physical loss or damage subject to the stated exclusionsCorrect answer: C
    4. D.Only losses for which a carrier has admitted negligence

    Explanation: The published wording states: "all risks of loss of or damage to the subject-matter insured except as excluded". The cover concerns loss of or damage to the insured cargo, subject to exclusions. It is broader than a named-events grant, but does not insure every commercial loss or depend on a carrier's negligence admission.

    Reference: Institute Cargo Clauses (A) 2009 — If published wording — clause 1

  4. 4A haulier wants insurance for compensation it becomes legally liable to pay to a customer for damaged goods. Which cover matches that interest?

    1. A.Hull insurance on the carrying vessel
    2. B.The customer's direct cargo property insurance
    3. C.The haulier's freight liability insuranceCorrect answer: C
    4. D.The customer's trade credit insurance

    Explanation: Aviva Freight insurance states: "contractual liability for loss or damage to their customers' goods in transit". Freight liability insurance protects the haulier's compensable liability to the goods owner. Direct cargo insurance protects the goods interest; hull and credit insurance address different property or payment risks.

    Reference: Aviva Freight insurance — Introducing Aviva Freight cover

  5. 5A closed container carries moisture-sensitive goods with damp timber dunnage. Which feature of the cargo risk should the underwriter recognise?

    1. A.Only moisture entering through damaged walls can cause humidity damage
    2. B.Damp dunnage is harmless once the container doors have been sealed
    3. C.Moisture within the packed unit can damage goods even without seawater entryCorrect answer: C
    4. D.Only visible liquid water at the time of packing can cause moisture damage

    Explanation: IMO/ILO/UNECE CTU Code states: "The source of this humidity is generally the cargo itself and to some extent timber bracings, pallets, porous packaging". Internal moisture can come from cargo and damp dunnage and damage the goods. External leakage or visible liquid at packing is unnecessary; sealing the unit does not remove internal moisture.

    Reference: IMO/ILO/UNECE CTU Code — Annex 3, section 1, Prevention of condensation damages

  6. 6Water has entered an insured cargo during transit. Under Institute Cargo Clauses (A) 2009 clause 16.1, what loss-handling obligation applies to the Assured?

    1. A.Leave the cargo untouched until the insurer accepts liability
    2. B.Take reasonable measures to avert or minimise recoverable lossCorrect answer: B
    3. C.Sell all affected cargo immediately, regardless of its condition
    4. D.Complete the carrier recovery before protecting the cargo

    Explanation: Institute Cargo Clauses (A) 2009 — If published wording states: "to take such measures as may be reasonable for the purpose of averting or minimising such loss,". Reasonable mitigation is required; waiting for acceptance can allow avoidable deterioration. An immediate indiscriminate sale is not the rule, and recovery need not precede protection.

    Reference: Institute Cargo Clauses (A) 2009 — If published wording — clause 16.1

  7. 7An importer replaces one overseas supply source with suppliers in several regions. What change does this create in its international goods transport network?

    1. A.More varied origins and routesCorrect answer: A
    2. B.Fewer distinct origin-to-destination links
    3. C.A shorter average route in every region
    4. D.Less need for coordination between origins

    Explanation: UNCTAD Review of Maritime Transport 2025 states: "more complex origin and destination networks". Using suppliers in several regions diversifies the network's origins and links. It does not by itself reduce the number of links, shorten every route or simplify coordination.

    Reference: UNCTAD Review of Maritime Transport 2025 — p. 1, International maritime trade

  8. 8Can a marine insurance contract extend to an inland road leg incidental to a sea voyage under the Marine Insurance Act 1906?

    1. A.Yes, but only if the whole journey is on a single bill of lading
    2. B.No, because the sea leg must be insured under a separate contract
    3. C.Yes, by express terms or usage of tradeCorrect answer: C
    4. D.No, because the Act confines every marine contract to sea risks

    Explanation: Marine Insurance Act 1906 states: "by its express terms, or by usage of trade, be extended". Section 2 allows incidental land risk to be included by express terms or trade usage. It does not impose a single-bill requirement, require separate sea cover or prohibit all land extensions.

    Reference: Marine Insurance Act 1906 — section 2(1)

  9. 9Under ICC (A) 2009, goods in the named origin warehouse are first moved for immediate loading onto the carrying vehicle to commence the insured transit. When does transit cover attach, subject to insurable interest?

    1. A.When that movement for immediate loading beginsCorrect answer: A
    2. B.Only when the vessel leaves the export port
    3. C.Only when the truck reaches the port terminal
    4. D.When the buyer signs the final delivery receipt

    Explanation: Institute Cargo Clauses (A) 2009 — If published wording states: "for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit,". Read with clause 8.1's first movement in the named warehouse, this attaches at the stated loading-related movement. Port arrival, vessel departure and the final receipt are later events.

    Reference: Institute Cargo Clauses (A) 2009 — If published wording — clause 8.1

  10. 10A haulier agrees to carry a customer's goods on common-law liability terms. Its proposed freight policy recognises only specified association conditions. What needs to be resolved before treating the policy as suitable?

    1. A.Whether every consignment has the same declared cargo value
    2. B.Whether the insured liability basis includes the agreed common-law exposureCorrect answer: B
    3. C.Whether a lower deductible removes all contractual liability restrictions
    4. D.Whether the policy limit equals the haulier's annual freight turnover

    Explanation: Aviva Freight insurance states: "where required, All Risks and Common Law Liability". The cover must match the liability basis undertaken. Equal shipment values, a lower deductible or a limit equal to turnover does not establish that common-law liability is an insured basis.

    Reference: Aviva Freight insurance — Key features, recognised liability bases

Exam Review

About CII Cargo and Goods in Transit Insurances MCQ Examination (E90)

CII Cargo and Goods in Transit Insurances MCQ Examination (E90) · GB

Key exam facts

Provider
Chartered Insurance Institute (CII), examination owner and assessment provider; PSI is the online examination platform.
Format
50 single-response multiple-choice questions, each with four options (A–D); onscreen at a test centre or by remote invigilation. This bank covers E90 only; M90 coursework is excluded.
Exam questions
Total questions: 50.
Time limit
60 minutes of examination answering time.
Passing score
Standard exam pass mark: 65%. CII adjusts MCQ marks where necessary for exam difficulty; this is not a fixed raw-score guarantee. The separate coursework pass mark is excluded.
Exam fee
M90 enrolment package: GBP £518 for members or £644 for non-members, including the first E90 exam entry, digital study materials and coursework. Only the first exam entry is included; printed materials incur postage and packaging. These are package prices, not a standalone E90 exam-only fee.

Topics covered

  • Understand the business environment of shipping and world trade. (18%)

    • Describe the world import and export business including the parties involved and identify emerging risks.
    • Describe the principal trading countries and trade routes, including risks.
    • Describe different types of goods, including their main origins, destinations and methods of transportation.
    • Describe the main terms of trade used in buying and selling goods internationally.
    • Describe documents used in the international carriage of goods.
    • World trade in goods for example, imports and exports, production and transportation.
    • Effect on the demand for marine insurance.
    • Changes in the UK marine insurance market.
    • Parties involved in the carriage of goods and their roles.
    • Emerging risks, for example cyber risks and carriage by drones.
    • Worldwide trading routes and manufacturing bases.
    • Goods in bulk, powder or liquid form, e.g., agricultural, oils, gases and chemicals, minerals, fertilisers, timber, flexitank containers and other bulk cargoes.
    • Goods in non-bulk form, e.g., clothing, machinery and motor vehicles, frozen seafood, tinned foods, domestic goods and electronic computer chips.
    • Containerisation of goods.
    • The definition and use of standard Incoterms® 2020.
    • Transportation documents.

  • Understand the legal and regulatory environment of cargo and goods in transit risks. (14%)

    • Describe the legal and regulatory environment of carriage of goods by sea, road, rail and air.
    • Apply the relevant laws and regulations to carriage of goods scenarios within the UK and global context.
    • The main features of the Marine Insurance Act 1906.
    • The main features of the Marine Insurance (Gambling Policies) Act 1909.
    • The main features of the Insurance Act 2015.
    • The main feature of the Enterprise Act 2016.
    • The main features of the Carriage of Goods By Sea Act 1971 (COGSA), including the Hague-Visby Rules.
    • Special Drawing Rights.
    • The main features of the Hamburg Rules.
    • The main features of the US Carriage of Goods By Sea Act 1936 (US COGSA).
    • The main features of the CMR Convention.
    • The main features of the CIM Convention.
    • The legal and regulatory environment in relation to Multimodal Transport.
    • The main features of the conditions of trade of UK freight, haulage and warehousing trade associations.
    • Apply the relevant laws and regulations listed in 2.1.

  • Understand the scope of cover for cargo. (24%)

    • Explain the cover provided by Institute Cargo Clauses and other clauses, and their appropriateness in different circumstances.
    • Apply the cover provided by Institute Cargo Clauses and other clauses to various scenarios in a global context.
    • Explain the cover provided by Project Cargo and Delay in Start Up Insurance.
    • Explain the cover provided by Stockthroughput Insurance.
    • Explain the types of Charterparties.
    • Coverage features of the Institute Cargo Clauses (A) 1/1/09.
    • Coverage features of the Institute Cargo Clauses (B) 1/1/09.
    • Coverage features of the Institute Cargo Clauses (C) 1/1/09.
    • Comparison of cover between (A), (B) and (C) Clauses.
    • Institute Cargo Clauses (Air) 1/1/09.
    • Coverage features of the Institute Cargo Clauses for specific trades.
    • Coverage features of Institute Container Clauses.
    • Other Cover Clauses.
    • Coverage features of the Institute War and Strikes Clauses 1/1/09.
    • Coverage features of the LSW 1130 War on Land Clauses.
    • Institute Cyber Attack Exclusion Clause CL380.
    • Appropriateness of Institute Clauses.
    • Apply the relevant clauses listed in 3.1.
    • The scope of Project Cargo insurance.
    • The scope of Stockthroughput insurance.
    • The different types of Charterparties, Voyage, Time and Bareboat or Demise charters.

  • Understand the scope of cover for haulage contractor’s liability. (10%)

    • Explain the tripartite nature of haulage contractor’s liability cover.
    • Explain the importance of custody and control.
    • Explain the legal liabilities, duties under conditions and the relationship between haulage contractors and other parties.
    • Haulage Contractor’s Liability-compared to cargo risks.
    • Typical policy construction and content, including duties of the insured and types of mis-delivery.
    • The implication of Custody and Control attachment on the haulage contractor’s liability for goods.
    • Limits of Legal Liability for freight forwarders, warehouse keepers and ports for the movement of goods.
    • Duties of the Haulage Contractor under conditions of carriage - CMR Convention, Road Haulage Association (RHA), British International Freight Association (BIFA) and United Kingdom Warehousing Association (UKWA).
    • Relationship of Haulage Contractor’s Liability to the Liability of other parties involved in the movement of goods.

  • Understand the underwriting of cargo and goods in transit insurance. (20%)

    • Explain the risk profile of different cargoes.
    • Evaluate geographic and physical aspects of risk in different countries and by different trade routes.
    • Explain typical approaches to premium rating and valuation including premium adjustments for marine cargo.
    • Describe the methods used in loss prevention.
    • Explain how risk accumulates and the importance of its control.
    • Explain rating practices of haulage contractor’s liability.
    • Explain rating practices of freight forwarder's and warehouse keeper's liability.
    • Describe a typical approach to rating premiums and the physical aspects of risk in Stockthroughput insurance.
    • Risk profiles of typically traded goods.
    • Risk profiles of specific goods.
    • Risk perception and evaluation of natural and man-made perils.
    • Geographic implications for risks in different countries and by different routes.
    • Underwriting considerations for policy types and extent of cover.
    • Basis of valuation relating to specific Incoterms® 2020.
    • Loss prevention by owners and bailees of goods.
    • Types and use of surveys.
    • Risk accumulation and how it is controlled.
    • Haulage contractor’s liability rating and premium adjusting practices.
    • Freight forwarder’s and warehouse keeper's liability rating and premium adjusting practices.
    • Constructing the premium and physical aspects of risk in Stockthroughput insurance.

  • Understand claims considerations and procedures for cargo and goods in transit. (14%)

    • Describe the claims handling process and the documentation used.
    • Describe the role of specialists in the settlement of claims.
    • Adjust cargo claims for partial or total loss in given scenarios.
    • Calculate cargo claims in a variety of particular scenarios.
    • Calculate recovery prospects under typical terms and conditions of carriage.
    • Claims handling process.
    • Declining claims.
    • Repercussions of late payment of claims.
    • Claims notification documents and procedures.
    • Documents relating to carriage, quantum and recovery.
    • Survey reports.
    • Bills of lading.
    • Sea and air waybills.
    • Other documents relating to claims.
    • Surveyors, average adjusters, recovery agents, insurance brokers and lawyers and their role in all aspects of investigation, adjustment and settlement of claims, and exercising recovery rights.
    • Sample claims adjusted under Institute Cargo Clauses.
    • Sample claims adjusted for partial damage, actual total loss and constructive total loss.
    • Calculate the sums involved in claims for general average, salvage and other charges.
    • Calculate settlement amounts for valued and unvalued policies.
    • Calculate recovery prospects under RHA, CMR, CIM, UKWA and BIFA, terms and conditions of carriage.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

50 single-response multiple-choice questions, each with four options (A–D); onscreen at a test centre or by remote invigilation. This bank covers E90 only; M90 coursework is excluded.

How many questions are on the exam?

Total questions: 50.

How long is the exam?

60 minutes of examination answering time.

What is the passing score?

Standard exam pass mark: 65%. CII adjusts MCQ marks where necessary for exam difficulty; this is not a fixed raw-score guarantee. The separate coursework pass mark is excluded.

How much does the exam cost?

M90 enrolment package: GBP £518 for members or £644 for non-members, including the first E90 exam entry, digital study materials and coursework. Only the first exam entry is included; printed materials incur postage and packaging. These are package prices, not a standalone E90 exam-only fee.

Official sources and references

Confirm current exam arrangements with the exam provider.